Dollar General (DG) AI Stock Analysis

• Market Cap: $22.42B
• Dividend Yield: 2.28%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 18.9
• Beta (1Y): -0.14
• Revenue Growth: 4.98%
• EPS Growth: -15.98%
• Country: US
• Employees: 194,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.86
• Shares Outstanding: 220,106,030
• 10 Day Avg. Volume: 3,476,972
• 30 Day Avg. Volume: 3,167,572
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 14.20
• 1Y Price Target: $123.86
• Price Target Upside: 19.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 68 Neutral
• Price Target: $111.00 ▲(7.07% Upside)

Dollar General's overall stock score reflects a mix of strong earnings growth and strategic digital initiatives, counterbalanced by financial challenges such as high leverage and declining cash flow. Technical indicators suggest bearish momentum, while valuation metrics are moderate. The company's focus on expanding delivery options and digital growth is promising, but financial and market pressures remain significant.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Digital Initiatives

Digital growth through initiatives like DG Media Network enhances customer engagement and positions the company for future market trends.

Delivery Expansion

Expanding delivery options through partnerships improves customer convenience and access, potentially increasing market share.

Negative Factors

High Leverage

Significant leverage can limit financial flexibility and increase vulnerability to interest rate changes, impacting long-term stability.

Declining Profit Margins

Decreasing profit margins suggest challenges in maintaining cost efficiency, which could pressure future profitability.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to reinvest in growth opportunities or reduce debt, affecting long-term financial health.

Dollar General Business Overview & Revenue Model

Company Description

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of February 25, 2022, it operated 18,190 stores in 47 states in the United States. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

How the Company Makes Money

Dollar General generates revenue primarily through the sale of a diverse array of consumer products. The company's revenue model is based on offering a broad selection of goods at competitive prices, which attracts price-sensitive customers. Key revenue streams include grocery items, consumables, seasonal merchandise, and apparel. Dollar General's strategy often revolves around maintaining low operational costs, which allows them to keep prices down while still achieving healthy margins. Additionally, the company has engaged in partnerships with suppliers and manufacturers to optimize its supply chain and enhance product offerings. The success of its private label brands also contributes significantly to its earnings, as these products typically have higher profit margins compared to national brands.

Dollar General Financial Statement Overview

Summary

Dollar General demonstrates steady revenue growth and stable gross margins, but faces challenges with declining profitability margins and high leverage. The balance sheet's high debt levels and reduced return on equity highlight potential financial risks. Cash flow generation has weakened, impacting the company's ability to fund operations and growth initiatives.

Income Statement

Dollar General's income statement shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 1.26%. The gross profit margin remains stable around 30%, indicating efficient cost management. However, the net profit margin has decreased over time, currently at 2.86% TTM, suggesting pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.13 TTM, indicating significant leverage, which could pose risks in a rising interest rate environment. Return on equity has decreased to 15.64% TTM, down from previous years, suggesting reduced profitability from shareholders' equity. The equity ratio is relatively low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -3.67% TTM. The operating cash flow to net income ratio is 0.47 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.59 TTM, reflecting a decrease in cash available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.65B	40.61B	38.69B	37.84B	34.22B	33.75B
Gross Profit	12.56B	12.02B	11.72B	11.82B	10.81B	10.72B
EBITDA	2.80B	2.69B	3.30B	4.05B	3.86B	4.13B
Net Income	1.19B	1.13B	1.66B	2.42B	2.40B	2.66B
Balance Sheet
Total Assets	31.65B	31.13B	30.80B	29.08B	26.33B	25.86B
Cash, Cash Equivalents and Short-Term Investments	1.28B	932.58M	537.28M	381.58M	344.83M	1.38B
Total Debt	17.07B	17.46B	18.09B	17.66B	14.25B	13.59B
Total Liabilities	23.64B	23.72B	24.05B	23.54B	20.07B	19.20B
Stockholders Equity	8.01B	7.41B	6.75B	5.54B	6.26B	6.66B
Cash Flow
Free Cash Flow	1.85B	1.69B	691.58M	423.97M	1.80B	2.85B
Operating Cash Flow	3.16B	3.00B	2.39B	1.98B	2.87B	3.88B
Investing Cash Flow	-1.30B	-1.31B	-1.69B	-1.56B	-1.07B	-1.02B
Financing Cash Flow	-1.79B	-1.29B	-542.07M	-392.46M	-2.83B	-1.71B

Dollar General Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DG, the sentiment is Negative. The current price of 103.67 is below the 20-day moving average (MA) of 106.95, below the 50-day MA of 109.50, and above the 200-day MA of 92.74, indicating a neutral trend. The MACD of -2.07 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DG.

Dollar General Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLLI	76 Outperform	8.15B	38.12	11.94%	―	10.14%	5.01%
TGT	72 Outperform	39.33B	10.09	25.47%	5.17%	-1.55%	-11.41%
DG	68 Neutral	$22.42B	18.89	15.60%	2.28%	4.98%	-15.98%
KR	68 Neutral	42.76B	16.33	32.17%	2.00%	-2.13%	3.22%
ACI	60 Neutral	9.92B	10.80	29.60%	3.24%	1.96%	-14.99%
DLTR	53 Neutral	19.27B	-6.97	-82.21%	―	-29.67%	-178.03%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Dollar General Corporate Events

Dollar General Declares Quarterly Cash Dividend

On August 27, 2025, Dollar General‘s Board of Directors declared a quarterly cash dividend of $0.59 per share, payable by October 21, 2025, to shareholders recorded by October 7, 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders, potentially impacting investor confidence and market perception.

Dollar General Appoints New CFO Amid Leadership Changes

On August 19, 2025, Dollar General announced the appointment of Donny H. Lau as the new Executive Vice President and Chief Financial Officer, effective October 20, 2025, following the resignation of Kelly M. Dilts. Todd J. Vasos, the CEO, will temporarily assume the role of principal financial officer until Mr. Lau’s commencement. Mr. Lau, who has extensive experience within the company and other organizations, will receive a comprehensive compensation package, including a base salary, bonuses, and equity awards. This leadership change is expected to maintain the company’s strategic financial direction and stability.

Dollar General CFO Resignation Announced July 2025

On July 11, 2025, Dollar General Corporation announced that Kelly M. Dilts, their Executive Vice President and Chief Financial Officer, will resign effective August 28, 2025, to pursue another opportunity. The company has initiated a search for her replacement, which could impact its financial leadership and strategic planning.